Malin Corporation PLC 2022 Full Year Results & Notice of AGM (0730Q)

TIDM0Y71

RNS Number : 0730Q

Malin Corporation PLC

16 February 2023

Malin Corporation plc

2022 Full Year Results and Notice of 2023 AGM

-- Estimated intrinsic equity value per share is EUR9.34 at 31 December 2022 and EUR10.07 at 14 February 2023

-- Malin generated cash proceeds of approximately EUR145 million by selling its entire position in Immunocore

-- Proposed return of capital up to EUR140 million by way of a tender offer that Malin has announced separately today

-- Malin's AGM will be held on 10 March 2023, immediately following its EGM to vote on tender offer resolutions

Dublin-Ireland, 16 February 2023 : Malin Corporation plc (Euronext Growth Dublin:MLC) ("Malin", the "Company"), a company investing in highly innovative life sciences companies, today publishes its full year results and annual report for the year ended 31 December 2022. Malin today also announces that the Letter from the Chairman, Notice of Annual General Meeting ("AGM") and Form of Proxy have been issued to shareholders.

Darragh Lyons, Chief Executive Officer, said:

" We are very pleased with the progress made by the business during 2022. The focus of our business strategy over the past few years has been to protect and enhance the value of our positions in our investee companies while these businesses worked towards reaching important business milestones. The achievement of these milestones by our investee companies has catalysed value realisation opportunities for Malin. Over the past two years, we have realised over EUR325 million of capital from our investments, including approximately EUR145 million of cash proceeds from the divestment of our entire 5% stake in Immunocore during 2022 at what we determined was an optimal value inflection point for Malin. This capital realisation underpins the proposed return of capital up to EUR140 million to shareholders by way of a tender offer that we are announcing separately today. "

Estimated intrinsic equity value

-- Malin's intrinsic equity value at 31 December 2022 was estimated to be EUR9.34 per share, or EUR317.3 million and is arrived at by taking the aggregate fair value of our investee company holdings in accordance with the International Private Equity and Venture Capital Valuation ("IPEV") Guidelines and adjusting this value for Malin's corporate cash.

-- Malin's estimated intrinsic equity value at 14 February 2023 has increased to EUR10.07 per share, or EUR342.4 million primarily due to an increase in the share price of Malin's NASDAQ-listed biotech holding, Poseida Therapeutics, Inc. ("Poseida").

Fair value of investee companies

-- The aggregate fair value of Malin's interests in its investee companies was EUR143.4 million at 31 December 2022 compared to EUR263.0 million at 31 December 2021. The decrease in the aggregate fair value during 2022 is largely due to the divestment of Immunocore during the year along with distributions received from Viamet and Kymab. The aggregate fair value was also negatively impacted by updated, lower fair value estimates for Malin's stakes in Viamet and Xenex. The reduction in the aggregate fair value is partially offset by the addition of a new investee company, CG Oncology, in September 2022 with a $7 million investment.

-- The aggregate fair value of Malin's interests in its investee companies increased to EUR168.8 million as at 14 February 2023 as a result of the increase in the market share price of Poseida.

Cash Position

-- Malin's corporate cash balance at 31 December 2022 was EUR173.9 million compared to EUR32.7 million at 31 December 2021.

-- Malin's cash balance was significantly boosted during 2022 by EUR166.1 million of investment realisations and other inflows from investee companies. The principal component of these inflows was EUR144.8 million in cash proceeds generated from the sale of Malin's entire 5% stake in Immunocore.

   --     Malin's cash balance at 14 February 2023 was EUR173.6 million. 

Investee Company Highlights

Poseida

-- Strategic collaboration and license agreement with Roche announced in August 2022 focused on the research and development of allogeneic CAR-T cell therapies directed to haematologic malignancies utilising Poseida's proprietary genetic engineering platforms.

-- Poseida received $110 million upfront from Roche and received a further $35 million from Roche in October 2022 following the successful achievement of the first clinical milestone. Poseida is eligible to receive up to $75 million of additional near-term fees, milestones and other payments. In addition, subject to Roche exercising its options and contingent on achievement of specified development, regulatory, and net sales milestone events, Poseida is eligible to receive payments potentially up to $6.0 billion in aggregate value, as well as tiered net sales royalties into the low double digits, across the multiple programs.

-- Following the announcement of the Roche collaboration, Poseida completed an underwritten public offering of shares raising gross proceeds of approximately $80 million. Malin acquired approximately 2.2 million shares at the public offer price of $3.50 per share for aggregate consideration of approximately $7.5 million. Malin's equity stake in Poseida following the completion of the offering is approximately 14%.

Viamet

-- In April 2022, Mycovia, the successor company to Malin's investee company Viamet, announced the approval from the United States Food and Drug Administration (FDA) of VIVJOA(R) (oteseconazole) for the treatment of recurrent vulvovaginal candidiasis ("RVVC") in females with a history of RVVC and who are not of reproductive potential.

-- In November 2022, Malin received a distribution from Viamet of approximately EUR13 million following Viamet's receipt of a milestone payment related to the approval of VIVJOA(R) . Malin received other distributions from Viamet of EUR0.7 million during 2022.

Kymab

-- In November 2022, Malin received approximately EUR6 million in connection with the release of its portion of the escrow payment on the upfront consideration payable to Malin in connection with the sale of its shareholding in investee company, Kymab Group Limited, to Sanofi in 2021.

   --    As part of the Kymab sale, Malin could receive up to a further $33 million from its share of milestone-related contingent payments. 

CG Oncology

-- Malin completed a $7 million investment in CG Oncology ("CGO") in September 2022 as part of a $120 million funding round. CGO is a Phase 3-stage oncolytic immunotherapy company focused on developing bladder-saving therapeutics for patients with bladder cancer.

Annual Report

Malin's annual report and further information on Malin is available to view on Malin's website at www.malinplc.com , under the Investors' section.

2023 AGM

The Letter from the Chairman, Notice of Annual General Meeting and Form of Proxy have been issued to shareholders. An electronic copy of all documents is also available on the Company's website at www.malinplc.com .

Malin's 2023 AGM will be held in the Conrad Dublin Hotel, Earlsfort Terrace, Dublin 2, D02 V562, Ireland at 10:15am GMT on Friday, 10 March 2023.

The Notice of AGM sets out the resolutions to be proposed at the AGM and the processes by which shareholders may vote in connection with the AGM.

In addition, a teleconference facility will be available to any shareholders not in physical attendance at the AGM to listen remotely to the proceedings of the meeting, using the following details:

   From Ireland dial:                         01 5369584 
   From the UK dial:                          020 3936 2999 
   From the USA dial:                        1 646 664 1960 
   From other locations dial:          [phone] 
   Listen-Only Access Code:            730530 

ENDS

About Malin Corporation plc

Malin (Euronext Growth Dublin:MLC) is a company investing in highly innovative life sciences companies. Its purpose is to create shareholder value through the application of long--term capital and operational and strategic expertise to a diverse range of global healthcare businesses. Malin has a focus on innovative businesses underpinned by exceptional science and works with its investee companies, providing strategic and financial support to enable them to reach their value potential. Malin is headquartered and domiciled in Ireland and listed on the Euronext Growth Dublin. For more information visit www.malinplc.com .

For further information contact:

Malin

Andrea Stafford, Head of Finance

Tel: [phone]

[e-mail]

Davy Corporate Finance (Euronext Growth Listing Sponsor & Joint Broker)

Brian Garrahy / Daragh O'Reilly

Tel: [phone]

Liberum (Joint Broker)

Phil Walker / Ben Cryer

Tel: [phone]

Powerscourt (Irish Media enquiries)

Eavan Gannon

Tel: [phone]

[e-mail]

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February 16, 2023 02:00 ET (07:00 GMT)